How to Play with the House’s Money in Franchising

How to Play with the House’s Money in Franchising

Posted on August 26, 2018 Tom Scarda, Certified Franchise Executive

I have a confession to make.

Although I claim to be a positive and optimistic person, when it comes to money, I’m a nervous nelly. Just like most people, I don’t like to lose my hard-earned dough. The great recession was ten years ago and I still cringe when I think about it. I clearly remember that day in 2008 when my 401K became a 201K. However, the good news is, now I can say that I almost have a 601K!

Things are good in the stock market right now. I’m feeling good and I think most Americans are delighted with how their investment portfolios are performing.

When the economy is going well most people are not thinking about planning for the future. However, there are some folks who are investing in semi-absentee franchise options that will most likely do well, even in a down economy. For the past year or so, I have been placing people in semi-absentee businesses where the candidate can keep their job. It’s like a plan “B” for them. According to the franchise magazine 1851, there is a franchise sold every seven minutes in America. People are jumping into business ownership more now than ever because franchising has evolved to levels unseen before due to private equity injections.

As an optimistic person, I don’t want to bring up a negative idea, but I have to be realistic. This bull market will not last forever. Bull markets never do. The markets always operate in cycles and the bad times or bear markets don’t last a long time either. However, I don’t smoke Hopium and hope that the current up-market will last forever. I am a prepper when it comes to money.

Now is the time, with the market doing well, to invest in yourself because that is the only thing you can control. My advice is to invest in a low investment, high margin business, with limited staff that is recession resilient and Amazon proof. The goal is to look at businesses that are manager run so you don’t have to stop what you are doing today. It’s a great way to build wealth or at least a safety net and a nest egg. If you’re interested in what I’m seeing out there, just book a quick, 15-minute appointment with me. There’s no obligation to buy anything. If you know me, you know there is no pressure here at The Franchise Academy because I understand franchising is not for everyone. 

Book a time with Tom

This investment strategy is not for everyone. However, if you’re invested in the stock market and you have made money over the past two years, it may be prudent to use some of your earnings to invest in a solid, well performing franchise. Play with house’s money, so to speak.

I was born the last year for baby boomers, 1964. In my life time, there have been seven recessions and eleven market corrections. Unfortunately, we are due for another correction. It could happen this week or two years from now. Who knows. But it will happen. Will you be surprised when it does?

While the sun is shining and you have money to spare, wouldn’t it be smart to think about diversification strategies and get some money out of the market and invested in something that you have direct control over? Hey, do you realize in the time it took to read this article another franchise was sold to someone who is protecting their family’s future? Are you next? The clock is ticking.

Topics: franchising, how to buy a franchise, semi-absentee franchises